The European Parliament’s Economic and Monetary Affairs Committee voted to advance a legal framework for a digital euro on Tuesday. The move sets the stage for trilogue negotiations and a potential rollout by 2029.
The committee approved the measure and directed immediate talks with EU member states to finalize the law. Officials described the step as essential to protect monetary sovereignty and limit dependence on foreign payment systems.
ECB President Christine Lagarde has argued that the digital currency would complement physical cash rather than replace it. Markus Ferber, a leading ECON Committee member, called stronger European payment resilience a geopolitical necessity.
The approved rules include online and offline versions of the digital euro. The offline mode would enable phone-to-phone transfers with cash-like privacy protections. Strict holding limits were added after lobbying by commercial banks, and a 12-month pilot phase with selected merchants will follow.
The decision came hours after the U.S. Senate passed a four-year ban on a central bank digital currency.
